With investment scams growing at an alarming rate, investors are having difficulty identifying authorized brokers since brokers that look legitimate may be scammers! Check the broker’s license before investing, and avoid dealing with brokers who are not authorized by financial regulations.
ProbabaFX updates scams to help investors avoid becoming victims of scams. Don’t know whether your potential broker is legitimate? Simply look for the broker’s name in the ProbabaFX broker’s review to see their regulatory status!
When a broker does not provide any licensing details, that’s a common red flag for scams. Despite claiming to have been established long ago, when you investigate, their domain name was only registered a few months ago, casting doubt on its credibility.
Scam brokers only offer an email address for contact with no physical address or phone number, which could disappear. Regardless of how attractive its offers are, scam brokers use that to deceive investors.
Scams are an unavoidable part of the internet trading experience. Let’s shed some light on how scam brokers work so you can protect yourself.
False Promises:
Scam brokers often lure customers with promises of guaranteed high returns. Remember, if it sounds too good to be true, it probably is.
Unregulated Platforms:
They operate on unregulated platforms, avoiding oversight. Always check for regulatory compliance to ensure the broker is legitimate.
Pressure Tactics:
Scammers use high-pressure tactics, urging you to deposit quickly. Legitimate brokers provide information without pushing you into hasty decisions.
Lack of Transparency:
Scam brokers are vague about their operations and financial dealings. Legitimate brokers are transparent and provide clear information.
No Risk Disclosures:
They downplay or omit risk disclosures. Reputable brokers emphasize the risks involved and ensure you are well-informed.
Withdrawal Issues:
Scam brokers create hurdles when you attempt to withdraw funds. Legitimate brokers facilitate smooth withdrawals without unnecessary delays.
Protect yourself by conducting thorough research, checking regulatory status, and verifying user reviews. Stay vigilant, and let’s create a safer trading environment together!
ProbabaFX exposed 60 scam brokers between January 15 and 19, 2024, many of whom had received warnings from international financial regulators.
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Source: Brokers View
